A month has gone by since the last earnings report for CRISPR Therapeutics AG (CRSP Quick QuoteCRSP - Free Report) . Shares have lost about 5.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is CRISPR Therapeutics AG due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Q2 Earnings & Revenues Beat Estimates

CRISPR Therapeutics reported a net loss per share of 98 cents in the second quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $2.18. The company had posted a loss of $2.40 per share in the year-ago period.

CRISPR Therapeutics' total revenues, comprising collaboration revenues, were $70 million in the second quarter, primarily attributed to a research milestone achieved during the quarter in connection with a non-exclusive license agreement with Vertex. Revenues substantially beat the Zacks Consensus Estimate and our estimate of $38 million and $1 million, respectively. In the year-ago quarter, revenues were less than $1 million.

Quarter in Detail

For the reported quarter, research and development expenses fell 18% year over year to $101.6 million, driven by reduced variable external research and manufacturing costs.

Also, general and administrative expenses declined 18% to $19.0 million due to a fall in external professional costs.

Collaboration expenses in the quarter reached $44.6 million, up 32% year over year. The upside can be attributed to a rise in the company’s manufacturing and pre-commercial costs on the exa-cel program.

As of Jun 30, 2023, CRISPR Therapeutics had cash, cash equivalents, marketable securities and accounts receivables of $1.84 billion compared with $1.88 billion as of Mar 31, 2023.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 21.59% due to these changes.

VGM Scores

Currently, CRISPR Therapeutics AG has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, CRISPR Therapeutics AG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

CRISPR Therapeutics AG belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Alnylam Pharmaceuticals (ALNY Quick QuoteALNY - Free Report) , has gained 8.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.

Alnylam reported revenues of $318.75 million in the last reported quarter, representing a year-over-year change of +41.8%. EPS of -$2.21 for the same period compares with -$2.29 a year ago.

For the current quarter, Alnylam is expected to post a loss of $1.69 per share, indicating a change of +49.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.8% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alnylam. Also, the stock has a VGM Score of D.